Darling presses EU for bank curbs

Chancellor Alistair Darling has urged the EU to crack down on bonuses after five of the UK's biggest banks signed up to curbs.

As European finance ministers gather for talks in Sweden, Mr Darling insisted tough new rules for pay must be implemented "without delay".

HSBC, Barclays, Lloyds, RBS, and Standard Chartered have announced they were falling in line with agreements reached at the recent G20 meeting in Pittsburgh, intended to link bonuses to long-term performance.

Under the rules, up to 60 per cent of bonus payouts will be deferred over three years, with arrangements to claw back payments from staff who fail to perform.

The banks will also be required to publish annual reports on their pay and bonuses, including information on the linkage with performance.

In a joint statement, released through the Treasury, the banks said they were committed to working with the Financial Services Authority on the implementation of the scheme.

They made clear that it was essential that reforms were adopted throughout the G20 to ensure a "level playing field" internationally.

"In a competitive and international business it is right to make sure that our staff are appropriately and competitively rewarded for sustainable, long-term performance," they said.

"We therefore welcome the G20 remuneration reforms, and their global nature, as it is essential that banking reward is consistent with effective risk management and that there is parity both nationally and internationally on these issues."

In a letter to Swedish finance minister Anders Borg, who is hosting the EU talks, Mr Darling wrote: "I urge all EU colleagues to take similar measures as quickly as possible, and look forward to discussing national implementation plans."